Retailers gain as govt eases foreign investment rules

MUMBAI (Reuters) - Shares in retailers gained on Friday after the government relaxed foreign investment rules in the sector, raising hopes it would spur overseas interest in domestic chains.

India eased investment rules for the retail sector on Thursday, allowing foreign supermarket operators to procure from small businesses which have invested no more than the equivalent of $2 million in plant and machinery, Trade Minister Anand Sharma told reporters.

Future Retail was up 9.36 percent, Trent was up 1.7 percent while Shoppers Stop gained 1.4 percent.

(Reporting by Himank Sharma; Editing by Rafael Nam)